Anti-corruption watchdog Gerak today urged the federal government to review its decision to give wang ehsan (goodwill payments) in lieu of the five percent oil royalty due to Kelantan.

gerak new leader pc 300508 mohd nazree "As an oil producing state, Kelantan deserves five percent of the overall oil production by national oil company Petronas in the state, said Gerak chairperson Mohd Nazree Mohd Yunus in a statement.

"If other oil producing states like Sabah, Sarawak and Terengganu are given royalties, why should the five percent be denied the Kelantan government?" he asked.

Prime Minister Najib Abdul Razak had announced recently in his budget speech that PAS-ruled Kelantan would be receiving goodwill payment from 2010.

Mohd Nazree however pointed out that the goodwill payment does not exist under the Petroleum Development Act 1974.

"Even the founding chairperson of Petronas Tengku Razaleigh Hamzah has affirmed this," he said.

Don't do a Terengganu

Mohd Nazree said that the federal government and Petronas can regain some measure of credibility if they adhered to the Petroleum Development Act.

"We believe that the Kelantan state government is transparent and honest. The federal government should give them the oil royalty payment and view things with an open mind.

"We do not want a repeat of what the former BN federal government did in Terengganu in 1999 when they lost in the general election.

"They instated goodwill payment in lieu of oil royalty, and now that they had reclaimed Terengganu, the term is reverted to oil royalty," he said.

He stressed that it is the state's right to demand for compensation from petroleum extraction activities.

"Petronas should be reasonable and it ought to pay a five percent royalty or a five percent cash payment to the state," he said.

Improve the BTN

Meanwhile, Gerak also called on the federal government to review the syllabus of National Civics Bureau (BTN) courses.

"It should be scrutinised to ensure that it does not incite racial sentiments," he said.

He proposed that topics such as integrity and anti-graft be included in the BTN syllabus in line with the government's effort to cultivate good governance.

He added that Gerak is ready to assist the government in drafting the content of its syllabus.